Silicom Ltd. (NASDAQ:SILC) (TASE:SILC), an industry-leading
provider of high-performance networking and data infrastructure
solutions,today reported its strongest-ever revenues,
operating profit, net income and EPS (earnings per share) for both the
fourth quarter and full year ended December 31, 2012.

Financial Results

Financial results for Q4 2012: In the fourth quarter of
2012, Silicom generated record revenues of $16.7 million, a 51% increase
compared with $11.1 million in the fourth quarter of 2011. This
represents 45% sequential growth compared with sales of $11.5 million in
the third quarter of 2012.

On a GAAP basis, net income for the quarter increased 26% to a record
$3.0 million, or $0.43 per diluted share ($0.44 per basic share),
compared with $2.4 million, or $0.34 per diluted share ($0.35 per basic
share), in the fourth quarter of 2011.

On a non-GAAP basis, net income for the quarter increased 37% to a
record $3.4 million, or $0.49 per diluted and basic share, compared with
$2.5 million, or $0.36 per diluted and basic share, for the fourth
quarter of 2011.

Financial results for 2012: For the full year, Silicom’s
revenues increased by 23% to a record $48.7 million from $39.6 million
in 2011.

On a GAAP basis, the Company’s net income for the year increased by 20%
to a record $9.9 million, or $1.42 per diluted and basic share, compared
with $8.2 million, or $1.18 per diluted share ($1.20 per basic share)
for 2011.

On a non-GAAP basis, net income for the period increased by 22% to a
record $10.6 million, or $1.52 per diluted share ($1.53 per ordinary
share), compared with $8.7 million, or $1.24 per diluted share ($1.26
per basic share) for 2011.

Cash Position: As of December 31, 2012, the Company’s cash, cash
equivalents, bank deposits and marketable securities totalled $56.9
million, or $8.12 per outstanding share, up $2.1 million compared with
the end of the third quarter, and up $7.7 million compared with the end
of 2011.

Comments of Management

Commenting on the results, Shaike Orbach, President and CEO, said, “We
are extremely excited to report our best quarter and year so far -
blowout results that demonstrate the extraordinary fit between Silicom’s
strategy and some of the Networking and Data Infrastructure industry’s
strongest forces. Our success with the world’s most respected suppliers
of appliance solutions to major cloud/Internet, virtualization and other
players continues to increase demand for all of our products, bringing
us new strategic customers as well as new, high-volume, long-term deals
with existing customers. With no end in sight to the growth of this
demand, and with continued strong loyalty from our 90+ OEM customers
throughout the world, we believe we are positioned to continue growing
strongly in the years ahead.”

Mr. Orbach continued, “As a concrete demonstration of our confidence,
and in light of our significant cash reserves, we were pleased to have
recently announced a dividend policy to further enhance the value of our
shares for our shareholders.”

Mr. Orbach concluded, “As our strong momentum continues, we feel more
empowered than ever to continue building Silicom to a whole new level.
With a superb and growing product portfolio, an unmatched customer
platform, a sterling reputation and virtually endless markets, we are
positioned to deliver on our promises and to continue generating strong
growth, profits and value for our shareholders in the years ahead.”

##

Conference Call Details

Silicom’s Management will host an interactive conference today, January
23rd, at 9:00am Eastern Time (6:00am Pacific Time, 16:00
Israel Time). On the call, management will review and discuss the
results, and will also be available to answer investors’ questions.

To participate, please call one of the following teleconferencing
numbers. Please begin placing your calls at least 10 minutes before the
conference call commences. If you are unable to connect using the
toll-free numbers, try the international dial-in number.

US: 1 888 668 9141

UK: 0 800 917 5108

ISRAEL: 03 918 0609

INTERNATIONAL: +972 3 918 0609

At: 9:00am Eastern Time, 6:00am Pacific Time, 16:00 Israel Time

For those unable to listen to the live call, a replay of the call will
be available for three months from the day after the call under the
investor relations section of Silicom’s website.

##

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance
networking and data infrastructure solutions. Designed primarily to
increase data center efficiency, Silicom’s solutions dramatically
improve the throughput and availability of networking appliances and
other server-based systems.

Silicom’s products are used by a large and growing base of OEM
customers, many of whom are market leaders, as performance-boosting
solutions for their offerings in the Application Delivery,

WAN Optimization, Security and other mission-critical segments within
the fast-growing virtualization, cloud computing and big data markets.
Silicom’s product portfolio includes multi-port 1/10 Gigabit Ethernet
server adapters, Intelligent Bypass solutions, Encryption accelerators
and a variety of innovative Smart adapters. These products are available
for incorporation directly into our OEM customers' systems, or provided
as part of Silicom’s patented SETAC (Server To Appliance Converter), a
unique approach to the provision of high quality standard platforms with
modular front connectivity.

This release, including the financial tables below, presents other
financial information that may be considered "non-GAAP financial
measures" under Regulation G and related reporting requirements
promulgated by the Securities and Exchange Commission as they apply to
our company. These non-GAAP financial measures exclude compensation
expenses in respect of options granted to directors, officers and
employees, as well as aborted acquisition related expenses. Non-GAAP
financial measures should be evaluated in conjunction with, and are not
a substitute for, GAAP financial measures. The tables also present the
GAAP financial measures, which are most comparable to the non-GAAP
financial measures as well as reconciliation between the non-GAAP
financial measures and the most comparable GAAP financial measures. The
non-GAAP financial information presented herein should not be considered
in isolation from or as a substitute for operating income, net income or
per share data prepared in accordance with GAAP.

Statements in this press release which are not historical data are
forward-looking statements which involve known and unknown risks,
uncertainties, or other factors not under the Company's control, which
may cause actual results, performance, or achievements of the Company to
be materially different from the results, performance, or other
expectations implied by these forward-looking statements. These factors
include, but are not limited to, those detailed in the Company's
periodic filings with the Securities and Exchange Commission. The
Company disclaims any duty to update such statements.

- FINANCIAL TABLES FOLLOW –

Silicom Ltd. Consolidated Balance Sheets

(US$ thousands)

December 31,2012

December 31,2011

Assets

Current assets

Cash and cash equivalents

$13,306

$11,483

Short-term bank deposits

2,527

5,010

Marketable securities

11,083

9,027

Accounts receivables: Trade, net

12,391

8,613

Accounts receivables: Other

2,234

1,597

Inventories

14,795

11,173

Deferred tax assets

47

48

Total current assets

56,383

46,951

Marketable securities

29,969

23,667

Assets held for employees’ severance benefits

1,377

1,275

Deferred tax assets

114

135

Property, plant and equipment, net

1,190

837

Total assets

$89,033

$72,865

Liabilities and shareholders' equity

Current liabilities

Trade accounts payable

$7,875

$3,978

Other accounts payable and accrued expenses

3,914

2,460

Total current liabilities

11,789

6,438

Liability for employees’ severance benefits

2,278

2,153

Total liabilities

14,067

8,591

Shareholders' equity

Ordinary shares and additional paid-in capital

36,086

35,265

Treasury shares

(38)

(38)

Retained earnings

38,918

29,047

Total Shareholders' equity

74,966

64,274

Total liabilities and shareholders' equity

$89,033

$72,865

Silicom Ltd. ConsolidatedStatements of Operations

(US$ thousands, except for share and per share data)

Three-month period

Twelve-month period

ended December 31,

ended December 31,

2012

2011

2012

2011

Sales

$16,693

$11,080

$48,729

$39,633

Cost of sales

10,407

6,369

28,849

22,430

Gross profit

6,286

4,711

19,880

17,203

Research and development expenses

1,290

1,071

4,401

4,165

Selling and marketing expenses

1,002

728

3,081

2,677

General and administrative expenses

805

443

2,369

1,890

Total operating expenses

3,097

2,242

9,851

8,732

Operating income

3,189

2,469

10,029

8,471

Financial income, net

128

87

752

439

Income before income taxes

3,317

2,556

10,781

8,910

Income taxes

286

156

910

667

Net income

$3,031

$2,400

$9,871

$8,243

Basic income per ordinary share (US$)

$0.44

$0.35

$1.42

$1.20

Weighted average number of ordinary shares used to compute basic
income per share (in thousands)

6,947

6,917

6,934

6,896

Diluted income per ordinary share (US$)

$0.43

$0.34

$1.42

$1.18

Weighted average number of ordinary shares used to compute diluted
income per share (in thousands)

It’s easy to fall into a pattern of dysfunctional releases, release processes that are characterized by delay, inefficiency, and endless meetings that encourage people to view releases as a problem. These are the kinds of meetings that inspire references to the movie Office Space or em...

Log data provides the most granular view into what is happening across your systems, applications, and end users. Logs can show you where the issues are in real-time, and provide a historical trending view over time. Logs give you the whole picture.
Logstash is an open source tool fo...

Over on the other side of the fence IT ops are screaming at the various portfolio dev teams for releasing highly risky functionality way too frequently but since the Agile dev adoption production has only had a couple of low priority P4 incidents caused by bad code releases. Things mus...

Application experience aficionados take note: you have choices now. No longer are you constrained to just HTTP/1 with a side option of WebSockets or SPDY. HTTP/2 is also an option, one that like its SPDY...

When it comes to finding useful articles, news and general information in the DevOps, CD or Agile industry, LinkedIn is usually the ticket.
We all know LinkedIn is a great tool for networking and connecting with friends, but it has also turned out to be a tool used to start meaningf...